- 1. CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORSTable Of Key Performance Indicators(KPI) KPIs
are measures of business performance. They are used to check
performance against targets, or as benchmarks to signal areas of
performance in need of improvement. They are, therefore, measures
of a firms Critical Success Factors (CSF).In any enterprise there
may be dozens of CSFs and literally hundreds of KPIs to track their
performance. Which ones are significant for any particular firm at
any particular time depends on what the business is planning to
achieve and what its current situation is, so a SWOT (Strengths,
Weaknesses, Opportunities, Threats) paradigm provides a way of
classifying CSFs as in the Table below.FACTOREXAMPLE KPIS
1.Percentage of seats filled for a theater 2.Number of consulting
hours sold for a services firmMONITORING OPERATING STRENGTH: those
factors that are the basis of continuing successful
performance3.Return on investment1.Market share CORRECTING FOR
WEAKNESSES: factors that need to improve to maintain the viability
of the business2.Value of sales per salesperson 3.Inventory
turnover rate1.Productivity rate SEEKING OPPORTUNITIES: those
operations in which an improvement could lead to bigger market
share or improved sales2.Time to market 3.Investment in
R&D1.Cash flow ADDRESSING THREATS: those that are providing an
immediate or longer term threat to viabilityVenkata Gubur2.Rate of
new customer acquisition 3.Liability claimsSenior Executive Vice
President DS Construction (Libya) 1
2. CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORSAs is apparent the set of KPIs that might be
relevant to any one CSF can be drawn from a number of processes
eliminating a weakness factor might involve improving sales per
salesperson, decreasing invoicing errors, improving safety record,
and so on.How you decide on which KPIs to track and act on depends
on:1.Industry Knowledge: What are the numbers that must be on track
in a particular industry and where does the firm under review rate
with regard to industry averages? What is happening in the industry
that will have an effect on the firms viability?2.Business Plan
Objectives: A business plan based on a strategic planning exercise
will provide the key objectives for the next planning period and so
determine which CSFs to focus on.3.Targeting Selected Drivers:
since it is unusual that all the drivers of any one CSF can be
acted on at once it is necessary to decide which to concentrate on
to achieve the stated objective. For example, increasing the
customer satisfaction score could involve a range of drivers such
as greater customer contact, reduced delivery errors, better
installation procedures, and product design improvement. These
become your KPIs for measuring how the process is going.Following
is a very comprehensive set of KPIs arranged on a business process
model - products and services, sales and marketing, finance etc.
Each KPI is followed by the type of measure that can be applied, a
length of time, a dollar cost etc.Venkata GuburSenior Executive
Vice President DS Construction (Libya) 2 3. CONSTRUCTION &
BUILDING PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE
INDICATORSTABLE 1. MOST COMMONLY USED KPIS BUSINESS AREACRITICAL
SUCCESS FACTORKPISEmployee productivityOutput per employee (#,
$)Inventory controlInventory turnover ratio (%)Production
efficiencyManufacturing lead time (time)Service quality
management1.Cost for administrative error / management revenues
($)PRODUCTS AND SERVICES2.On time delivery (%) Customer activity
Customer satisfactionSatisfied customer index (#)Customer
serviceTime spent on customer relations (time)Market
penetrationMarket share (%)Sales operationsMARKETING AND
SALESNumber of customers (#)1. Direct contact with customers per
period (#, time) 2. Sales closed / sales contracts (%)Sales
volumeAnnual sales per customer ($) 1.Absentee rate (time)Employee
satisfaction2.Leadership index (#) 3.Satisfied employee index (#)
4.Turnover of full time employees (#)PEOPLE1.Training time per
employee (time) Training and development2.Training investment per
annum (total $) 3.Training investment per customer ($)Information
technologyInvestment in IT ($)Occupational health and safetyDays
lost to injury (timeSales and credit systemAverage collection
function expense per customer ($)Administrative services
costsAdministrative costs ($)Cash managementCash flowSYSTEMS AND
PROCESSES1.Gross margin ($) FINANCEVenkata GuburIncome2.Profits per
employee (%) 3.Profits to total assets (%)Senior Executive Vice
President DS Construction (Libya) 3 4. CONSTRUCTION & BUILDING
PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS1.Revenues
per employee ($) 2.Revenues to total assets (%) Revenue
YieldsVenkata Gubur3.Revenues resulting from new business
operations Return on investment ($)Senior Executive Vice President
DS Construction (Libya) 4 5. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORSTABLE 2. DETAILED
LIST OF KPIS CULTURE Employee satisfaction Absentee rate of team
members (%) Workdays missed (#) Turnover of full time permanent
employees (%) Turnover of all employees (%) Average length of
service for employees (time) Employee suggestions implemented (#,
%) Employee participation in stock ownership plans or other
employer related activities (#, %) Employee satisfaction ratings,
which might include questions on some or all of the following
matters: Employee confidence in leadershipEmployee perception of
climate for process improvementEmployee perception of fair
treatmentEmployee perception of open communicationsEmployee
perception of recognition/rewardEmployee perception of safety
climateEmployee perception of supervisionEmployee perception of
teamworkGoal clarityPerceived alignment of systems (reward,
communication, performance management, succession, development,
etc.) with strategy Empowerment index (#) Frequency of performance
evaluations Leadership index (#) Motivation index (#) Number of
employee suggestions submitted during the period Percentage of
offers to prospective employees that are accepted Satisfied
employee index (#)Community Accidents or injuries resulting from
the companys products or services (#,$) Community groups or
projects sponsored (#) Litigation or regulatory expenses as a
percent of sales Money or employee hours donated to community
events (time,$)Venkata GuburSenior Executive Vice President DS
Construction (Libya) 5 6. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Percent of raw
materials from renewable sourcesPRODUCTS AND SERVICES Cycle time
Order to delivery time (time, % of standard)Employee productivity
Absentee rate (time / period) Average hours worked per week (time)
Output per employee ($, #) Production per employee (for example,
chargeable hours per team member in a professional service firm,
contacts per salesperson) Productivity statistics per employee by
department Sales per employee ($) Sick days taken per employee
(#/period) Value added per employee (production costs net of those
paid to outside suppliers)Inventory control Average number of days
finished goods on hand (time) Days in inventory (time) Inventory
turnover ratio (%) Ratio of slow moving inventory to total
inventory (%)Product mix New products to total products (%) New
products (less than 2 years old) to full company catalogue (%) New
products (less than 2 years old) to product family (%) Variety of
products (#)Product quality management Completeness of
manufacturing transfer package from R&D Cost of rejected
materials ($) Customer complaints (or claims) per day or product
(#) Customer complaints due to damaged shipments (%) Customer
complaints caused by substandard materials or parts (%) Damage
claims per shipment ($) Damage to in-storage products by employees
(#, $) First pass yield (#) Inventory shrinkage as a percent of
production or cost of sales personnel Mean time between failures
(time) Defect rate (#, %) Discrepancies with product handling and
storage policies andVenkata GuburSenior Executive Vice President DS
Construction (Libya) 6 7. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORSprocedures (#)
Improvement recommendations by vendor implemented during the period
(#) Parts or vendors on ship to stock (#) Returns by customers (#)
Returns by customer due to damaged shipments (#, %) Service calls
or amount of follow up service required by customers (#) Parts per
volume accepted (%) Problem free installs on first attempt (%)
Products meeting specifications (%) Damage free shipments (%) Good
components in final assembly (%) Production or service errors
reported (#) Quality improvement (%) Reissues (#, %) Reject rates
(%) Rework as a percentage of total production (%) Rework cost as
percentage of production cost (%) Rework cost or rate (e.g.,
number/percentage of off spec products) Rework time (time) Total
downtime or process stoppages due to process problems (such as
machine breakdowns or unavailable personnel) Total units of rework
(#) Warranty claims per week (#/time) Warranty costs ($) Warranty
expense ($) Waste or scrap as a percent of total materials used
(%)Production efficiency Average days (hours) late divided by total
production days (hours) Average overtime hours per employee Average
production costs per unit Average time incurred per product Batch
size Common parts Completeness of manufacturing transfer package
from R&D Current backlog of orders Cycle time Frequency of out
of stock occurrences Frequency of production delays due to
equipment failureVenkata GuburSenior Executive Vice President DS
Construction (Libya) 7 8. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Frequency of
production delays due to substandard materials or parts Frequency
of production shut downs or delays due to inventory shortages
Function points/employee month (#) Idle or non-productive time as a
percent of total time (%) Incoming inspection Inspection time Labor
utilization rates Machine breakdowns per week (or day) Machine
downtime per week (or day) Manufacturing lead time Margin
Opportunity Analysis Index (e.g., optimum production scheduling)
Measures of timeliness Numbers of products using common processes
(flexibility of production process design) Order processing time
Percentage of machine uptime per week Planned versus actual
throughputs Production processing time Quoted lead times Ratio of
approved to submitted orders Response time to customer request
Setup time Stock in excess of next 60 days needs Stock keeping unit
(SKU) numbers per inventory person Surpluses Testing efficiency
(e.g., average of all routine tests measured in hours) Time to
market for existing products Utilization of installation
teamProduction output Actual machine output as a percentage of
output specifications Orders shipped Production level variation by
month due to seasonality Production rate (# per period, per person,
per labor hour, per machine hour) Total productivity factor
(outputs/inputs) Total quantities produced or total hours
billedVenkata GuburSenior Executive Vice President DS Construction
(Libya) 8 9. CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE
OF KEY PERFORMANCE INDICATORSProduction wastage In process scrap
Scrapped inventory amounts (#) Scrap quantity or cost ($) Waste or
scrap as a percent of total materials used (%) Cost of rejected
materials ($)Service quality management Average days late per late
shipment (time) Contracts filed without error (#) Corporate
performance/quality goal (%) Corporate quality goal (#) Cost for
administrative error / management revenues ($) Cost of quality as
percentage of sales (%) Cycle count accuracy Delivery on-schedule
(%) Delivery of rush orders on schedule (%) Invoice accuracy Mean
time to resolve a problem Number of partial shipments Number of
product errors Number of shipping errors Number of stockouts On
time delivery (e.g., percent of shipments received by the requested
dates) Percent of installations on time at the right location
Percentage of customer orders not on time, on spec Planning
accuracy Rate of customers returns or billing disputes due to
products shipped but not ordered Ratio of orders shipped accurately
according to customer orders to total orders shipped Response time
(e.g., 24 hour repairs) Service expense/customer/contact Service
expense/customer/year Support expense/customer ($)Research and
development new products Business development
expense/administrative expense Competition (# products introduced
by competitors) Development costs (average product development
costs per product) Development speed (time to market) for new
productsVenkata GuburSenior Executive Vice President DS
Construction (Libya) 9 10. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Increase in major
projects count of number of projects over a specified $ value New
products introduced (#, # per person, # per period) Patents
(average. age, #pending, # received, per $ investment in R&D)
Percent of products that met customer/production needs without
requiring modification Percent of sales or profit from products in
various stages of the product life cycle Percent of revenue from
target market segment Percent of revenues generated from products
developed in the last # months Rapid design changes Rate of new
products abandoned after introduction to market (number
abandoned/number initiated) Rate of new products abandoned before
introduction to market (number abandoned/number initiated) Ratio of
new / total products Sales or profit of new products/services as a
percent of total sales or profit Variety of products Volume and mix
attainment to orders (responsiveness of production process)Research
and development - investment Average update (R&D) expenses
incurred per existing product Average annual number of substantive
changes made per existing product Average payback period for new
products Average product development costs per product Industry
development investment Installation base of a particular new
product or service Investment in new product support and training
($) Investment in new technology as a percent of sales New market
development investment ($) Number of patents received (#) Patents
per R&D investment $ (#) Percent of R&D projects that
result in new products or services R&D allocation by project
($) R&D expense/administrative expense (%) R&D invested in
basic research ($) R&D invested in processes (%)Venkata
GuburSenior Executive Vice President DS Construction (Libya) 10 11.
CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORS R&D invested in product design R&D
resources/total resources (%) Sales or profit of new
products/services as a percent of related R&D (%) Total
research and development (R&D) expenses ($)Supply chain
management Cost of products or services supplied ($) Frequency of
late receipts (%) Fulfillment accuracy (Frequency of returned
purchases, ratio of rejects to total items purchased, rejects per
shipment received, frequency of wrong items received) Open purchase
orders (#, $, average age) Complaints handled correctly on the
first call (%) Product quality (% of items received having quality
related defects Quality of features of the supplier's product or
service that are critical to the firms processes or needs) Lead
time (Required lead times) Satisfaction with suppliers (can be
measured through an internal survey similar to that used for
customers) Suppliers dependability index (#) Total cost of products
(including freight, set up, unfavorable payment terms, cost of
excessive lead times or purchase quantities) compared to
competitors of the supplierMARKETING AND SALES Customer acquisition
Average sales per new customer (#) New customers (#) New accounts
opened (#) Prospects (#) Prospects converted to sales (#) Referrals
(#) Revenues from new customers/total revenues (%)Customer activity
Average sales per repeat customer ($) Customers (#) New business
done with repeat customers (%) Growth in the average sales per
repeat customer (%) Share of purchases made by customers (that is,
the portion of the customers' purchases that go to the business
versus their purchases from competitors, sometimes called share of
wallet)Venkata GuburSenior Executive Vice President DS Construction
(Libya) 11 12. CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I
TABLE OF KEY PERFORMANCE INDICATORSCustomer retention Average
customer duration with company (time) Average duration of customer
relationship (time) Customer retention rates (%) Customer turnover
rates (%) Customers lost (# or %) Dormant customers (for example,
those who have not purchased anything in six months)(#) Lost
business revenues compared to market average ($) Net customer gains
(#) Repeat customers (%) New business done with repeat customers
(%) Revenue from existing customers (%) Ratio of customers with no
sales activity in last six months to total customers (%)Customer
satisfaction Satisfied Customer Index: Derived from customer
satisfaction surveys that may include questions addressing any or
all of the following matters. Measured on a rating scale devised
for the questionnaire: Brand value Customer intent to repurchase
Customer perception of aesthetics Customer perception of
availability Customer perception of ease to work with Customer
perception of financing Customer perception of hidden or indirect
costs Customer perception of quality of outputs Customer perception
of reliability Customer perception of service (includes attributes
such as timeliness, responsiveness, understanding of needs of
customer/customer's business, quality of relationship, knowledge of
the team, customer focus, and proactivity) Customer perception of
warranties Partnering Index Rating established by reviewing
activities related to the amount of customer or business partner
involvement in such things as product planning, involvement in
projects, investment in product and services (e.g. information
technology). Referral customers Separate analysis of the survey
scores of the most important, valuable, or profitable customers
Profitability of each customer (sales and cost of sales for
eachVenkata GuburSenior Executive Vice President DS Construction
(Libya) 12 13. CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I
TABLE OF KEY PERFORMANCE INDICATORScustomer) Percent of
unprofitable customers Customers' satisfaction with
products/services as compared to satisfaction with those of
competitors Customer complaints / orders (%) Complaints / customers
(%) Order value of complaint items / turnover (%) Orders not
delivered on time (%) Time spent on customer relations (average
time)Customer service Customers per week with unsolved problems
(average #) Average response time per customer request Average
response time to solve customer problem Customer complaints
resolved (#, %) Customer perception of ease to work with per survey
Customer complaints resolved on the first contact (#, %) Customer
problems solved within stated time frame (#, %) Potential orders
that had to be declined (#) Delivery deadlines met (compared to
either the date requested or promised) (%) Rate of responses
exceeding specified time frame (for example, 24 hours) Sales versus
first request date Service attributes such as timeliness,
responsiveness, understanding of needs of customer/customer's
business, quality of relationship, knowledgeable staff, customer
focus, and proactivity per survey Service quality rating per survey
Time devoted to customer service (time) Brand recognition
(percentage of potential customers who recognize company brand
based on surveys)Market penetration Brand recognition (that is, the
percent of potential customers who know of the companys product or
service or who think highly of it), which is generally done through
surveys Market potential ($) Market share (that is, the company's
share of total sales in the geographic areas in which it competes)
done on a product or product line basis ($) Number of channels in
which the product is available (#) Number of customers (#) Number
of new customers (#)Venkata GuburSenior Executive Vice President DS
Construction (Libya) 13 14. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Percent of proposals
made that were accepted (#) Sales to new customers as a percent of
total sales (%)Marketing campaigns Advertising or marketing budget
($) Advertising exposure (# people per channel) Amount of time
spent with customers or potential customers (time) Advertisements
placed (#) Industry trade shows attended (#) Presentations made (#)
Number of times the company or its products are mentioned in
periodicals or broadcast media Number of proposals made (#) Public
awareness of, or favorably disposed toward, the product/service
(based on surveys) (%) Response rate (responses as a percentage of
those exposed) (%) Responses to marketing efforts (calls to the
company's 800 number for information, postage paid cards returned,
website hits, average user time spent at website) (#)Pricing Direct
price ($) Price relative to competition (%) Total cost to customer
(relative to competition)Product delivery Damage - in shipment (#,
$, # of returns) Rate of customer complaints due to damaged
shipments (%)Sales management Additional sales made to existing
customers through referrals or cross selling Customers/employee (#)
Gross margin per sales call Marketing cost as a percent of sales
Marketing cost per new customer obtained Orders per sales callSales
mix Growth rates by product (%) Sales from each distribution
channel (%) Sales from each product/service or product/service line
(%) Sales from new products (%) Sales from products whose patents
will expire within a year (%)Venkata GuburSenior Executive Vice
President DS Construction (Libya) 14 15. CONSTRUCTION &
BUILDING PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS
Sales of one product from customers who also bought a companion
product (%) Unprofitable products/services (%) Revenue generated
from customer segments (e.g., new; affluent; large versus small;
industry; region)($) Sales to major customers ($)Sales operations
Average sales per salesperson ($) Average time from customer
contact to sales response Customer time/employee attendance
Customer visits to the company (#) Days visiting customers (#)
Direct communications to customer per period (#, time) Direct
contact with customers per period (#, time) Field sales management
Field salespeople (#) Frequency of market research of products
Inbound calls taken Number of sales (or response rate) necessary to
cover costs of marketing campaigns Outbound calls made (#) Sales
conversion (%) Response rates from direct mail pieces and other
advertisingSales volume Annual sale per customer ( $) Average sale
amount (per transaction) ($) Average sales per customer (#, $)
Average sales price per unit ($) Customer revenue list Frequency of
sales (# of sales transactions / time) Growth rate, for each
significant product or product line Order backlog Profitability of
each product/service or product/service line ($) Sales orders taken
($) Sales per square foot ($) Sales per relevant unit, broken down
by geographic area or product lineVenkata GuburSenior Executive
Vice President DS Construction (Libya) 15 16. CONSTRUCTION &
BUILDING PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE
INDICATORSPEOPLE Skill level Average employee years of service with
company (#) Average years with company of full time temporary
employees (#) Company managers with advanced degrees: business (%),
science and engineering (%), liberal arts (%) Level of information
sharing, for example, number of items contributed to a company wide
databank, amount of consultation on others' projects provided by
internal experts Employees who are trained in multiple functions
within the company (#) Employees cross trained in other tasks or
departments (#) Management personnel trained on company personnel
policies and labor laws (#) Patents issued Percent of employees
trained in critical technologies or functions Percentage of
employees with a relevant qualification Skills mix, based on
performance appraisals, and including: Knowledge (product,
client/customer, industry, systems, organizational); Skills
(financial, analytical, technical, relationship/interpersonal,
problem solving, negotiating, selling, managing); and key
experiencesTraining and development Cross department (or cross
functional) assignments Training time per annum (total time,
time/employee) Training investment per annum (total $, $/employee)
Training expense/administrative expense (%) Rate of employee
participation in industry, trade, or professional associations
Share of development hours (%) Share of training hours (%) Training
investment/customer ($)SYSTEMS AND PROCESSES Accounting system
Amount of unreconciled items in bank reconciliations (#) Average
penalties paid ($) Book to physical adjustment to total inventory
ratio Delay (number of days) from period end to report date Amount
of book to physical adjustments ($) Effective tax rates Frequency
and amount of unreconciled items (bank reconciliations, accounts
receivable, accounts payable, fixed asset ledgers, etc.)Venkata
GuburSenior Executive Vice President DS Construction (Libya) 16 17.
CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORS Frequency of cycle counts Frequency of other
management reports (weekly sales reports, cash reports, etc.)
Frequency of physical inventory counts Frequency of unreconciled
items in bank reconciliations Management (user) satisfaction rate
(annual survey) Number of adjusting journal entries per period
Number of missed due dates Number of year end audit
entriesInformation technology Accuracy of information (e.g.,
information systems capabilities) Average capitalized IT
expenditures per person Average downtime per IT asset Average IT
update expenditures per person Change in IT inventory ($)
Discontinued IT inventory/IT inventory Employee (user) satisfaction
rate (annual survey) Estimated average time (days, hours, minutes,
etc.) needed to backup Frequency of off site backups Frequency of
testing business continuation procedures Investments in IT ($) IT
capacity (CPU & DASD) IT capacity/employee IT
investment/salesperson IT investment/service & support employee
IT performance/employee Number of key systems that do not have a
firm backup Number of users required to accept system modifications
Number of users that interact with IT providers Orphan IT
inventory/IT inventory PCs/employee (#) Percentage of IT
expenditures to related total fixed asset costs Ratio of price paid
for IT assets to price quoted (sample) Technology training and
education expenses per employee Capacity of EDI system (#) Upgrades
to EDI system Value of EDI systemVenkata GuburSenior Executive Vice
President DS Construction (Libya) 17 18. CONSTRUCTION &
BUILDING PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE
INDICATORSOccupational safety and health Average cost per accident
($) Average number of days required to investigate safety concern
reports (time) Average time off per accident (time) Average
worker's compensation claim as a percentage of industry average ($)
Days lost to injury (time) Environmental and safety behaviors
(e.g., safety training and awareness activities, safety monitoring,
near misses) (range) Environmental and safety results (e.g., number
of days with no safety violations or environmental incidents) (#)
Frequency of employee safety training programs (time) Number of
accidents caused by inappropriate handling or storage policies and
procedures (#) Number of accidents per week (#) Production lost to
safety violations (#) Safety violations noted per week (#) Total
worker's compensation claims as a percentage of industry average
($)Sales and credit system Average collection function expense per
customer ($) Collection function expense per customer phone call
(average $) Collection function expense per past due account over
$1,000 (average $) Past due accounts (#, $, on average per period)
Credit limit per new account ( average $) Credit request approval /
rejection decision time (average time) Amount over 90 days past due
($) Final demand letters sent to customers (#,$) New account past
due receivables as a percentage of total new account receivables
Past due amounts from major customers ($) Credit applications
accepted/rejected (%) Past due accounts to total receivables (%)
Past due accounts with collection agencies (%) Rate of customer
complaints due to incorrect invoices and statements #, %)Purchasing
system Amount of emergency purchases made (#) Average days late per
shipment (time)Venkata GuburSenior Executive Vice President DS
Construction (Libya) 18 19. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Order value (average
$ per order) Comparative on-time delivery rates by vendor Frequency
and amount of unreconciled items Frequency of purchases from
unapproved vendors Frequency of unmatched receiving reports,
purchase orders, or invoices Instances of invoices presented when
goods were accepted without a valid purchase order Invoices
processed per person (#) Lost early payment discounts as percentage
of purchases (%) Number of special orders processed (#) Part
numbers purchased per person (#) Back-ordered items to total items
ordered (%) Late shipments to total shipments (%) Percentage of
vendors with both 100% on-time delivery and less than 0.5% rejects
Purchase orders placed without competitive bid (#, %) Purchase
orders processed per person (#) Ratio of manual checks to
computerized checks (%) Ratio of number of second signatures
requested to disbursements over specified amount (when second
signatures are required for disbursements over a specified
amount)FINANCE Accounting service - cost Average accounting
function costs per aggregated transactions processed (such as:
inventory items, vendor invoices, customer invoices, payroll
checks, vendor checks, and manual checks) Average accounting
function costs per employeeAccounts payable Accounts payable
turnover ratio Days in payablesAccounts receivable Accounts
receivable turnover ratio Allowance for doubtful accounts as a
percentage of accounts receivable Average age of receivables (time)
Days sales in receivables (days sales outstanding)Administrative
service costs Administrative costs ($) Administrative
expense/employee ($)Venkata GuburSenior Executive Vice President DS
Construction (Libya) 19 20. CONSTRUCTION & BUILDING PRODUCTS
INDUSTRY I TABLE OF KEY PERFORMANCE INDICATORS Administrative
expense/gross premium (%) Administrative expense/total revenues
(%)Asset management Amount of fixed asset losses from employee
theft ($) Asset turnover ratio Capital efficiencyCapital
investments Average pay back period (time) Comparison of planned to
actual discount factor Comparison of planned to actual internal
rate of returnCash management Amount of discount offered customers
for timely remittance (%) Average balances in non-interest bearing
accounts ($) Average daily idle cash ($) Average number of days
bills are paid before due date (time) Average time between receipt
and deposit of funds (time) Cash flow Collection period (accounts
receivable divided by sales per day)(time) Delinquent payment
penalties as a percentage of purchases (%) Interest expense as a
percentage of net capital (%) Length of cash cycle (time from
payment for raw materials to ultimate collection of receivables
from sales) Percentage of past due payables to total payables (%)
Purchase discounts taken (#) Ratio of customer remittances by
electronic means versus by check (%) Ratio of interest earned to
average cash balances Ratio of actual to planned cash flowsCredit
management Average credit function expense per credit application
Average credit function expense per customer Average credit
function expense per new customer Collection function expense as a
percentage of credit sales Credit function expense as a percentage
of credit sales Credit function expense as a percentage of new
customer credit linesCustomer service cost Service expense ($ per
customer / period, $ per contact, $ per product) Ratio of customer
service function expenses to total sales (%)Venkata GuburSenior
Executive Vice President DS Construction (Libya) 20 21.
CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORSDistribution cost Average cost per
distributor ($) Average delivery cost per truckload shipment
Delivery expense as a percentage of salesFinancial strength and
flexibility Average unused credit lines per source (#) Credit
rating Debt ($) Debt to assets ratio Debt to equity ratio Leverage
ratio (DuPont formula) Liabilities to equity ratio Number of actual
(potential) debt covenant and other violations (#) Number of
approved financial credit sources (#) Ratio of used to total credit
lines Times interest earned Total assets ($) Total assets/employee
($)Functional expenses Activity costs ($) Direct department expense
($) Fixed expenses such as depreciation, real estate, and personal
property taxes ($) Major cash expenditures ($) Material costs as a
percentage of sales (%) Programmed expense controllable expenses
including routine, one time, and additional project expenses Ratio
of average cost overrun to average budgeted cost Routine expense
(e.g. salaries, maintenance, supplies)($) Targeted expenses as a
percentage of sales (%) Variable versus fixed expenses (e.g.,
non-operating income/expense) (%)HR department expenses Average HR
function costs per employee ($) Average HR function costs per
paycheck processed ($) Ratio of HR function costs to total expenses
Ratio of HR function costs to total salesVenkata GuburSenior
Executive Vice President DS Construction (Libya) 21 22.
CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORSIncome Gross margin (%) Net income ($) Net
income margin (%) Profits as a percentage of sales (%) Profits
resulting from new business operations ($) Profits per employee (%)
Profits to total assets (%) Return on net sales Revenue/expense
ratioInterest Ratio of actual average borrowing rate to current
market rateInformation technology cost IT development expense/IT
expense (%) IT expense/administrative expense (%) IT
expense/employee ($) IT expenses on training/IT expense
(%)Liquidity Available working capital ($) Cash from operations as
a percentage of sales (%) Current ratio Inventory or receivables as
a percentage of working capital (%) Liquid assets ($) Quick
ratioMaintenance costs Average preventive maintenance costs per
asset ($) Percentage of preventive maintenance costs to total
maintenance costs (%)Marketing costs Average marketing (and sales)
expenses per customer ($) Average marketing (and sales) expenses
per salesman ($) Marketing (and sales) expenses as a percentage of
new customer sales (%) Marketing (and sales) expenses as a
percentage of sales (%)Overhead Allocated expenses overhead that is
reallocated to business units Operating expenses as a percentage of
net sales (%) Overhead (burden) rateVenkata GuburSenior Executive
Vice President DS Construction (Libya) 22 23. CONSTRUCTION &
BUILDING PRODUCTS INDUSTRY I TABLE OF KEY PERFORMANCE
INDICATORSOther costs Bad debt expense as a percentage of net
credit sales (%) Net retained expense ($) Non operating
income/expense financial impact not directly related to current
operations One time, truly nonrecurring expenditures Warranty costs
as percentage of sales (%)Production costs Cost of product ($) Cost
per transaction ($) Cost versus competitors' cost ($) Indirect cost
as a percent of sales (%) Inventory, labor and overhead per SKU
(stock keeping unit) number Inventory shrinkage as a percent of
production or cost of sales (%) Material price variances
Non-product related expense/customer/year ($) Price paid (per
length, weight etc.) for raw materials ($) Production costs per
employee ($) Rate of cost reduction Ratio of inventory $ to
inventory labor and overhead dollars Ratio of price paid to price
quoted Unit cost versus competitionRevenue Revenue per salary $
Revenues resulting from new business operations ($) Revenues per
employee ($) Revenues to total assets (%) Sales per square foot (of
retail space) ($) Same store sales ($) Sales per employee ($)Risk
management Average and total deductibles per asset class and
location Average insurance premium per $1,000 of coverage (by type
of insurance) Company portion of claims to total claims (%)
Percentage of covered estimated exposure to maximum estimated
exposure (%) Weighted average Best rating of insurersVenkata
GuburSenior Executive Vice President DS Construction (Libya) 23 24.
CONSTRUCTION & BUILDING PRODUCTS INDUSTRY I TABLE OF KEY
PERFORMANCE INDICATORSShareholder value Compound growth rate (%)
Dividends ($) Market value ($) Shareholder loyalty (e.g. switching
behavior) Shareholder mix (institutional versus individual;
employee; other) Stock price, appreciation ($)Value added Breakeven
time EVA (Economic Value Added) MVA (Market Value Added) Value
added/employee ($) Value added/IT employees ($)Wages / benefits
Compensation expense per employee ($) $ amount of claims (health
and W/C) per employee Ratio of average annual percentage salary
increase to percentage increase in cost of living Ratio of benefit
costs to total compensation Ratio of compensation expense to sales
Ratio of employees to employer's share of health care costs Top
five types ($) of health insurance claimsYields Return on assets
ratio Return on equity ratio Return on equity (DuPont formula with
leverage factor) Return on net asset value (%) Return on net assets
resulting from new business operations ($) ROCE (Return on Capital
Employed) ROI (Return on Investment)Venkata GuburSenior Executive
Vice President DS Construction (Libya) 24
